New Hampshire Auto Dealer Bond Overview
Both retail vehicle dealers and wholesale auto dealers in New Hampshire are required by the state government to obtain a New Hampshire auto dealer bond when they get licensed at the New Hampshire Division of Motor Vehicles (DMV). The purpose of this bond is to guarantee that New Hampshire auto dealers will comply with state regulations pertaining to their license.
The auto dealer bond protects the New Hampshire DMV and the public (as the bond’s obligees), by offering financial compensation if auto dealers are found to be in breach of state regulations, and a claim is made against their bond. The bond is like an agreement made between the obligees, the auto dealer (the principal), and the surety.
If a claim is made against the bond, and the surety compensates the obligees, the principal has to indemnify the surety in return.
For more information about the cost of your New Hampshire auto dealer bond, how you can get bonded and other licensing requirements, read on below!
New Hampshire Auto Dealer Bond Cost
Retail and wholesale auto dealers in New Hampshire need to obtain a $25,000 bond when they apply for their license at the DMV.
||Auto Dealer Bond Cost Based on Credit Score|
|Bond Type||Bond Amount||Above 700||
|New Hampshire Motor Vehicle Dealer Bond||$25,000||$250-$500||$375-$750||$500-$1,000||$750-$1,750|
The cost of the bond is not the same as the bond amount, however. The cost is a small percentage of the total amount of the bond, and is set by the surety when you apply for your New Hampshire auto dealer bond.
The percentage you are offered depends on your financial rating as an applicant. Sureties always consider one or more of the following indicators when they determine your rate:
- Applicant personal credit score
- Applicant financial statements
- Applicant asset profile
- Applicant industry experience
By far the most popular and important indicator for sureties is your personal credit score. The better your score, the lower your rate will be. For example, applicants who have a high score can expect a standard market rate in the range of 1,5%-3% of the total bond amount. Applicants with a slightly lower score are usually offered a rate between 3%-4%.
Yet, credit score and finances are not the only factor that determines your rate. You can get a better rate on your New Hampshire auto dealer bond by applying with the right agency.
Different agencies have access to different markets. We at Bryant Surety Bonds can offer you the most competitive rates on auto dealer bonds in the state. We can do this because all of our partners are A-rated and T-listed surety bond companies. These are some of the best companies in the whole country and their backing is the most reliable you can get!
To find out how much your New Hampshire auto dealer bond might cost, try our surety bond calculator on the right. If you’d rather get a precise quote, apply online here. Your quote is entirely free. Just submit your application and we’ll get in touch with you as soon as possible.
You can also call us at 866.450.3412 if you’d like to find out more about surety bonds or need advice about your New Hampshire motor vehicle dealer bond. Our professionals are highly skilled and will be able to help you.
And if you want to know more about how sureties determine premiums, our surety bond cost page is the right place for you!
Bad Credit Dealer Bonds
Getting an auto dealer bond when you have bad credit can be a challenge. Typically, bad credit applicants have a hard time getting bonded, because sureties refuse to issue bonds for them.
In most of these cases, our Bad Credit Surety Bond Program makes bonding possible. Due to our great relationship to our surety partners, we can offer New Hampshire DMV bonds to those of our clients that have bad credit, or scant credit history. Rates for these bonds vary 4%-7%, but their quality is the same– they are backed only by the best sureties.
New Hampshire Auto Dealer License Application and Renewal
All New Hampshire auto dealer licenses must be renewed on a yearly basis by March 31st. When applying for a new license or renewing your license, you may be asked to submit a number of documents along with your application. The DMV’s address is:
Division of Motor Vehicles – Dealer Licensing Bureau
23 Hazen Drive,
Concord, NH 03305
Some of the documents you may be asked to submit, along with your dealer application are:
- Your New Hampshire auto dealer bond
- An approval from your local authorities
- An original service agreement with a local and approved NH Inspection Station
- A criminal background check
Make sure to check with your DMV when you prepare your documentation. Usually they can provide a checklist that includes all the necessary steps.
When you apply for your retail vehicle license, a $125 fee is due. There may be additional fees that you will need to pay once you receive your license.
When you renew your license, you will also need to renew your bond. If you have improved your credit score over the past year, you may get a lower rate whenever you renew your bond!
Get Your New Hampshire Auto Dealer Bond Today
To get your New Hampshire auto dealer bond apply online here and submit your application. Approvals are fast so you can expect to hear from us soon.
Need more info before you apply? You can always reach us at 866.450.3412 to get more information or receive assistance. We will be happy to provide you with answers and help you with your application. Call us!